SBA updates, simplifies Paycheck Protection Program loan forgiveness application

The Small Business Administration today released a revised loan forgiveness application for the Paycheck Protection Program, which implements provisions of the recently enacted PPP Flexibility Act.

The agency also released an “EZ” version of the application (for borrowers who: are self-employed and have no employees; did not reduce employees’ salaries or wages by more than 25% and did not reduce employees or employee hours; or experienced reduced business activity due to COVID-19-related health directives and did not reduce employees’ salaries or wages by more than 25%. Details on applying these provisions are available in instructions to the EZ form. 

Both applications give borrowers the option of using the original eight-week covered period for loans made before June 5 or an extended 24-week covered period, the agency said. 

Yesterday, SBA released an interim final rule revising certain previous rules for the program to conform with the PPP Flexibility Act, recently enacted legislation supported by the AHA. The Coronavirus Aid, Relief, and Economic Security Act created the forgivable loans to help eligible small businesses keep workers on the payroll during the pandemic.